Pace of fall in high tech salaries quickens
Manufacturers Economic Research director Daphna Aviram-Nitzan
said that the drops in salaries are expected to continue in 2009
as well.
by Tzahi Hoffman
Globes
December 28, 2008
The Manufacturers Association of Israel reported a third quarter
drop of 5.6%, on an annualized real term rate, in salaries in the
high-tech sector. It was the steepest drop in five years.
In the third quarter of 2008, the average monthly salary in the
high tech sector was NIS 16,527. Overall, in industry in general,
the average salary in the third dropped 2.8% in real terms,
reaching NIS 11,035 per month, which is still nearly three times
the minimum wage.
Manufacturers Association Economic Research Department
director Daphna Aviram-Nitzan said that the drops in salaries are
expected to continue in 2009 as well.
According to Aviram-Nitzan, "2008 as a whole will show a drop
of 1.5% in real terms of the average salary in industry".
She expects that as industry slides into recession, resulting from
lower demand and a credit crunch, decreases in nominal salaries
will steepen, and there will be more layoffs.
Aviram-Nitzan pointed out that the decreases in salary began
earlier in the year, and the pace has been quickening, from
a 0.6% annual rate in the first quarter of 2008, to a 3.4% annual
rate in the second quarter, and reaching 5.6% in the third quarter.
"Such sharp real-term drops in salaries have not been seen for
five years", she said.